What is DigiShares?
DigiShares is one of the first European platforms that provide unique, white-label software for investment funds and crowdfunding. DigiShares stands out for its use of blockchain tokens that it offers for sale. These tokes represent securities like bonds or equity that have revenue-sharing rights or voting right and are fully regulated. Every token has it’s own digital share certificate stored within it.
DigiShares assist their clients with designing the tokens and subsequently help their clients manage them. The company ensures that only verified investors can purchase these tokens and offer their investors a modern, sleek dashboard to track the status of their investments.
What is unique and beneficial about DigiShares?
DigiShares does not only offer a software solution but also provides consecutive support to its investors. Some of the benefits include:
- 24/7 access to the platform and trading
- Instant trading and settlement
- Access to investors
- Enhanced liquidity of shares
- Transparent process
- Access to purchase and invest in private companies
DigiShares follows regulations closely and works with international legal advisors who help them set up SPVs and other legal documents. The company has created a customized KYC/AML process for their platform.
Once tokens have been issued, the platform will maintain s share cap table which allows the investor to look for new investors who are interested in buying shares. DigiShares works with exchanges across the world, where they list and trade the tokens. They also work closely with investor networks where their clients can sell their tokens.
What are the platform’s distinctive features?
The issuer dashboard is highly progressive and innovative. It has an ownership cap table that automatically updates when tokens are traded. Through the dashboard, issuers can oversee the allocation of shares, distribution of dividends, reissuing of lost tokens, and verify investors.
The platform whitelists new investors that are interested in purchasing shares and tracks their status upon approval. The token checks that the buyer is whitelisted and if the trade is allowed it updates the share cap table. In order to be approved the client must specify the details of their capital raise. The platform’s administrator then checks the verification documents of investors and approves those investors that have correctly submitted their identity and address verification documents.
For investors, the platform offers a swift registration and verification process through a customized KYC/AML process. The process is custom based on the investor’s jurisdiction and to match the legal requirements of a specific capital raise. Once registered, the investor has to indicate what company their interested to invest in and the amount. Investors can purchase a certain amount of newly issued shares as the capital raise starts. Traders have access to a voting system, freezing/renewing tokens, a share cap table and will be paid dividends accordingly.
The platform has a forum on it for socializing with other investors and discuss trading. The platform offers internal trading, too. Currently, the platform is available to retail and experienced investors in Europe and also accredited US investors but the company plans to grow its global access.
DigiShares helps its clients to design their tokens and smart clients to ensure that they are in accordance with the laws of their jurisdiction. They are also technology agnostic and support most recognized protocols for security token smart contracts.
What will happen with the raised capital?
DigiShares’ public STO will be a European small capital raise where the company will sell shares for 10% ownership in DigiShares for 1 million EUR. The funding will allow DigiShares to become a “ leading provider of technical infrastructure for the tokenization of securities in various industries.”.
Currently, DigiShares is focusing on the tokenization of investment funds as well as real estate funds and eventually plans to look at start-ups as the business grows. The token will be listed on security exchanges in Europe with which DigiShares partners.
What is the future of DigiShares?
With a pioneering platform and a strong team at hand, the company is aiming to bring, “a solid deal flow of STOs to DigiShares.” The company continues to develop and invest in its software to offer more features and functions. DigiShares is looking at a bright future and is an opportunity for investors of different levels to diversify their portfolio.